In our post-pandemic world, the war for talent is raging more than ever. And few sectors of the economy are spared. In this context, employee retention has become an imperative for companies to keep the best people on their teams. As talent retention has become of utmost importance, what are employee retention best practices? Here are our answers.
Employee retention strategies, what is it?
An employee retention program will allow an employer to retain talent within its organization. It will include a number of solutions that will result in the retention of employees by acting on two main pillars: improved working conditions and/or compensation.
Why do employees leave a company?
There is no doubt about it. Today's employees don’t stay in the same organizations for many years. Gone are the days when an employee starts and ends his career within the same structure. The time spent is even getting shorter and shorter. According to a Randstad survey, people hold an average of 10 jobs in the course of a working life starting at 18 and ending at 65. That's four and a half years per job. And it's even less for the younger generations, who stay in the same company for an average of 3 years.
There are many different reasons why employees leave their company. It's impossible to be exhaustive and cite them all. But among the most common are a bad corporate culture, high levels of stress that are becoming increasingly difficult to bear, and a lack of fairness and respect from the hierarchy towards employees. In addition, there is a lack of opportunity for advancement and a lack of autonomy. This last element has become essential (and we will come back to it later).
Why is it important to use a retention strategy?
Faced with a shortage of talent, companies are now obliged to do everything they can to retain the best people in order to maintain a competitive advantage in the market. It is more difficult and costly than ever to replace a lost employee. But talent bleed can have many unfortunate consequences for the organization that is the victim, hence the importance of implementing strategies to retain employees. The implementation of these strategies will help the company to:
Maintain the morale of the teams
Discontent and dissatisfaction are quickly contagious. If one employee leaves, then a second, then a third, the ripple effect is assured. It is certain that others will follow. This can be a real blow to team morale or even destabilize the company. This is a situation that must be avoided at all costs.
Avoid giving the competition an advantage
Employees who leave a company do not disappear into thin air. They go to the competition. And, of course, they go there armed with the knowledge they gained in the organization they worked for. This can make the organization sweat, especially if the talent in question was one of the few really irreplaceable employees.
Positively impacting results
Building employee loyalty means also avoiding long and costly recruitment campaigns that will have a negative impact on results. And if, in addition, you add to the bill the costs of onboarding and training newcomers, the bill can quickly become expensive. This is true especially in certain sectors, for instance, the IT sector. According to concordant studies, it is necessary to pay the consequent sum of 87,000 dollars to replace a developer. In the end, implementing a talent retention program will cost the company less than replacing departing team members.
Improve the company's brand image
A high turnover is a sign of a real malaise within the company. Under these conditions, there is little chance that those who leave will recommend the company to others. To put it another way, the organization's reputation will inevitably suffer, eventually hindering its recruitment efforts. As usual, prevention is better than cure. A good turnover strategy will also help to avoid such a mishap.
10 Best employee retention strategies
As we can see, effective retention strategies have become essential. Among the strategies that have already been deployed in the field by companies, some have undoubtedly proved their worth.
1. Flexible schedule and remote work
Today, employees want more autonomy. According to a survey by Data People, remote jobs attract twice as many applicants as office jobs. Remote jobs are therefore attractive in terms of recruitment. They are also attractive in terms of employee retention. Telecommuting and beyond all the formulas (such as the 4-day week) that bring more flexibility to employees, are instruments of choice in job retention strategies. Flexible working companies provide them with a better work/life balance, contribute in reducing their daily expenses (e.g. on car journeys between home and office) and, ultimately, lead to a higher job satisfaction. This is a key factor today, especially with the younger generations.
2. Take care of your onboarding strategy
A good employee retention program must start from the moment a newcomer is welcomed into the company's teams. This is why you must pay particular attention to your onboarding strategy. This is when the values of the organization will be presented to the new employee in more detail, and it will be important to ensure that he or she integrates as smoothly as possible into the team. According to Deloitte, 45% of resignations occur in the first year. This is a fact to keep in mind.
3. Encourage communication
Is something wrong? Teams shouldn't be afraid to speak up. Encouraging open communication is also one of the most powerful effective employee retention strategies. The manager must make this known and set an example by being available for open discussion. In this way, the company organization can help smooth out any difficulties and prevent a situation from getting out of control.
4. Giving meaning to the work done
The search for meaning in work has become a fundamental element over time, especially with generations Y and Z. From this perspective, the company's involvement in CSR programs with the participation of its employees can be particularly recommended. This will enhance the company's image and bring out a sense of pride among employees. In short, it is a good way to retain them while contributing to the well-being of the community.
5. Increase opportunities for career advancement
There is nothing more frustrating than standing still in your career. That's why the implementation of career development programs is highly recommended when talking about top retention strategies. It is a way to signal to the employee that the organization offers him all the options to grow within it. This will allow him to see his future in the company positively.
6. Reward efforts (not just results)
It's not that good results don't count. They are, of course, essential to the good life of the company. However, the effort made by the employee in his professional tasks also deserves to be noted and rewarded. The results are not (yet) there? Maybe, but the employee has given it his all. So why not reward them for that too?
7. Set up satisfaction surveys and polls
To contribute to the loyalty of employees in the life of the company, it is wise to set up satisfaction surveys to determine if improvements can be envisaged. And to increase employee involvement (a positive retention factor), why not ask their opinion about the name of a new product or the development of a new solution?
8. Take care of employees' health
Whether physical or mental, employee health should be a primary concern for companies. In this respect, management must ensure that all obligations regarding safety and hygiene in the workplace are respected. In addition, offering health coverage (simple and/or supplementary depending on the state of legislation in the various countries) is a formidable weapon in terms of best employee retention strategy.
9. Offer social benefits…
In the same vein, the existence of a benefits package can make the company attractive enough to consider staying. This can include gift certificates, discounted tickets to shows, vacation vouchers in countries where these exist, etc.
10. …And a fair remuneration
The issue of pay remains, in many ways, critical. Feeling fairly compensated for the work done also means feeling recognized by the company. It is therefore up to the company to adopt a salary policy that truly recognizes the employee's contribution to the organization. If not, the employee will be strongly tempted to go elsewhere.
What does retain mean?
In the context of work, retain means to continue to employ people in a company or organization.
Why is retention of employees important?
The war for talent is raging more than ever. In this tense context, employee retention has become an imperative for companies in order to keep the best people in their teams.
What is a retention strategy?
A retention strategy will include a number of solutions, resulting in employee loyalty by acting on two main pillars; improving working conditions and/or compensation.
How to retain the employees?
There are many ways to retain employees. For example, the generalization of flexibility and remote work, setting up employee satisfaction surveys, offering social benefits, giving meaning to the work done, paying the right price for the work done...